BHP Billiton (BHP) Looks At Alcoa

Posted: July 15, 2007 at 5:12 pm

According to MarketWatch, BHP Billiton (BHP) is looking at a possible deal to buy Alcoa. Both companies missed out on getting married when Rio Tinto (RTP) locked up a bid for Alcan (AL).

With Alcan’s shares up 100%+ over the last year and Alcoa up only 60%, even a premium offer would appear to be a good deal. BHP has a market cap of $144 billion to Alcoa’s $48 billion, so by relative size the buy-out would make sense.

At the end of all the dancing, there may just be one huge aluminum company left.

Douglas A. McIntyre

Read more: Uncategorized, , , ,